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Palestinian President Mahmoud Abbas Says He Won't Tolerate Attacks like Friday's Suicide Bombing; Hollywood's Gold Rush

Aired February 28, 2005 - 10:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


DARYN KAGAN, CNN ANCHOR: And in London, they're at it again. Look at these live pictures. Caped crusaders delivering their protests to the second floor ledge of the British Foreign Office. They're part of a parental rights group, Fathers for Justice. That group demands greater parental rights for divorced fathers. It is notorious for publicity stunts just like this.
RICK SANCHEZ, CNN ANCHOR: President Bush did the Europe thing all last week. I suppose you could say he did some of the Asia thing as well. And now he's going to be doing the domestic thing. And the domestic thing is has of late included his Social Security reform package.

We get the details now on this from our White House correspondent, Dana Bash, who is go to be following the president, who I understand might be speaking in the next couple of hours, is that right, Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: That's right, Rick. And certainly Social Security is on top of his domestic agenda, no question about it. And the president will be speaking within about a half an hour to the governors who are here for a meeting. But he is also going to get back on the road, travel to New Jersey and Indiana at the end of the week of course to talk about his idea for creating private accounts in Social Security.

Republicans say although it is very early in the process, some are already bracing for some tough compromises.

(BEGIN VIDEOTAPE)

BASH (voice-over): After a week on the world stage, the president returns to his biggest challenge on the home front: selling a Social Security overhaul. While Mr. Bush was on his self described European listening tour, members of Congress were back home listening to often skeptical constituents about the Bush plan for creating private accounts in Social Security.

SEN. RICK SANTORUM, (R) PENNSYLVANIA: What do you get in exchange if we do nothing?

BASH: Republican Senator Rick Sanatorium spent all week in town hall meetings pushing the idea, insists it's still early, but admits the president is short support.

SANTORUM: Right now, they're not there. But like I said, you're asking me whether I win the game and I'm two minutes into the game.

BASH: Several Senate Democrats say they'd back private retirement accounts but only outside Social Security. Some Republicans are starting to signal compromising on personal accounts may be inevitable, but the philosophical divide runs deep.

SEN. JON CORZINE, (D) NEW JERSEY: This proposal of privatization is a radical shift in the covenant that we have laid down with regard to Social Security on generation to the next.

SEN. JOHN SUNUNU, (R) NEW HAMPSHIRE: I don't think a bill will pass that doesn't include personal accounts for younger workers, at least giving them the option.

BASH: Still completely unresolved, how to achieve the president's stated goal: ensuring Social Security's solvency. The White House concedes personal accounts alone won't do it. And Democrats are seizing on that.

SEN. JOE BIDEN, (D) DELAWARE: The American people begin to understand there's no correlation between, quote, fixing Social Security and private accounts.

BASH: The president is careful not to take anything except raising payroll taxes off the table. Republican sources say compromise options for keeping Social Security out of the red include cutting benefits deepest for the wealthy while letting low income beneficiaries do better and raising the $90,000 payroll tax cap, though most GOP leaders call that a tax hype and a nonstarter.

(END VIDEOTAPE)

And Republicans do see some progress in their cause in that some Democrats over the weekend did acknowledge that Social Security is a problem that does need fixing. The White House is again saying that pretty much everything is on the table in order to try to find what may be quite an elusive compromise for this -- Rick.

Moving back to the business at hand last week that the president was dealing with. There were a lot of questions as to whether or not this administration would join some European countries in, well, dangling a carrot in front of the nose of the Iranians to get them to stop with nuclear weapon program. Any movement on that, Dana?

BASH: Well, what the White House said with the president and his top aides said in Europe last week, is that they really want to work with the Europeans on Iran. Of course, the United States is not a part of the talks that three Europeans countries are having with Iran to get them to stop at their nuclear program. But the White House says they were very happy about the fact that they spoke with one voice about the need for Iran not to have a nuclear weapon.

So the president did come back, and just to perhaps show the way they're trying to frame this, the next day, the day he got back, on Friday, he did meet with his top advisers here at the White House to talk about what they could potentially go for in terms of economic incentives. The White House says this morning, they are considering several incentives, including allowing Iran to get into the WTO, but it is certainly significant in that this seems to be fill philosophically different than they way White House handles North Korea, for example, where they want offer anything before they agree to stop their nuclear program first.

SANCHEZ: Yes, that's interesting. Dana Bash, we thank you for bringing that report on what appears to be a snowy day there in Washington.

BASH: Very much.

SANCHEZ: Thank you -- Daryn.

KAGAN: Now on to Israeli/Palestinian peace efforts. An international conference gets underway in London tomorrow on Palestinian reforms. Secretary of State Condoleezza Rice left Washington this morning for the meeting. British Prime Minister Tony Blair is hosting the conference. And foreign ministers from some 25 Arab and European countries will attend. Israeli will the not attend.

Palestinian President Mahmoud Abbas today said he will not tolerate attacks like Friday's suicide bombing in Tel Aviv. Abbas' comment follows Israeli Prime Minister Ariel Sharon's criticism that the Palestinians weren't doing enough about terrorism. But Mr. Sharon leveled his harshest charge for Friday's attack against a Syrian-based group.

CNN's John Vause has more from Jerusalem.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): Galla Badran (ph) was a walking human bomb on Friday night, a 22-year-old student from a small village in the west bank. But Israeli authorities have no doubt the order to blow himself up came from Islamic Jihad leaders in Syria. Not so, say the Syrians.

FAROUQ AL-SHARA, SYRIAN FOREIGN MINISTER: If a terrorist attack took place in Beirut, they accuse Syria; if it took place in Tel Aviv, they accuse Syria. Probably for tsunami, they would accuse Syria.

VAUSE: More than a year ago Israeli warplanes bombed a suspected training camp for Islamic Jihad south of Damascus. Another airstrike is a possibility, says Israel, just not yet.

ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): The orders came from the Islamic Jihad elements in Syria. Even though we know this was certain, it is not enough to absolve the Palestinian Authority of its responsibility.

VAUSE: Instead, the pressure is on the new Palestinian leader, Mahmoud Abbas. Israel is demanding he not only disarm militant groups, but eliminate them completely.

MARK REGEV, ISRAELI FOREIGN MINISTRY SPOKESMAN: It's very important to dismantle that infrastructure so it can't be exploited by third parties.

VAUSE: Israeli security is back on high alert, and the handover of five West Bank cities to Palestinian control has been put on hold.

NABIL SHA'ATH, PALESTINIAN AUTHOR P.M.: The more that delay takes place, the more we are going to create adverse conditions.

VAUSE: Mahmoud Abbas has been trying hard to avoid a direct confrontation with the militant groups, declaring a cease-fire to a crackdown.

GUY BECHOR, POLITICAL ANALYST: If he goes towards Israel, this process in the U.S., those Islamic movements will jump and overthrow him actually.

VAUSE: But if he doesn't act, Israel warns it will. And that could mean a return to the past.

(on camera): But no one it seem is willing to go there just yet. For now, the Israelis are talking tough, but walking lightly. And the Palestinian security services have been hunting down and arresting those involved in the Tel Aviv attack. Relations have been strained, but are far from breaking.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

KAGAN: And once again, we have this developing story coming out of the Northern West Bank. It is a report from Israeli troops saying they discovered, they say, a car that was packed with explosives, believed to be prepared by militants from the radical Islamic Jihad movement. By the way, that is the same group that claimed Friday's suicide bombing in Tel Aviv that John Vause was just talking about in his report. More on that as details come in.

SANCHEZ: We also have more reaction the Syrians. In fact, the Syrian presence in Lebanon has now led to thousands to try and defy the government's ban against protests today.

Take a look at this. The demonstrators were able to make -- able to reach Beirut's Martyr Square, despite a blockade by security forces there. Opposition lawmakers plan a no-confidence today in the Syrian- backed government. The opposition blames Syria for the recent assassination of Rafik Hariri. Syria has denied any connection with killing of the former Lebanese prime minister.

KAGAN: We're going to turn the corner here in a little bit, talk about a story that animal loves will relate to, a question of how far would you go to save your own dog? Extensive vet care, yes? Expensive medical bills, sure. What about CPR? One man's love for his best friend, coming up in the next hour.

SANCHEZ: Also, downloading your music. There's some changes that are coming, and it could hit you right smack dab in the wallet.

(COMMERCIAL BREAK)

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(BEGIN VIDEO CLIP)

BARBARA STREISAND, SINGER/ACTRESS: The Oscar goes to...

DUSTIN HOFFMAN, ACTOR: Sorry.

STREISAND: OK.

HOFFMAN: Go ahead.

STREISAND: The problem is I forgot my glasses but... I'm so happy to give you this again, Clint. "Million Dollar Baby"!

(END VIDEO CLIP)

SANCHEZ: It was all about "Million Dollar Baby." It scored a knockout at the Oscars, even as "The Aviator" proves to be a winning contender, as well. Who told you that, by the way, here last week? Don't know, but her initials are Daryn Kagan. And yes, she got it right. Beat me. Chris Rock led the charge in this year's Hollywood gold rush. In fact, listen up.

(BEGIN VIDEO CLIP)

ANNOUNCER: Chris Rock!

CHRIS ROCK, COMEDIAN: Thank you. Thank you!

(END VIDEO CLIP)

SANCHEZ: He held the expletives to a minimum. Those are curse words, by the way. But came out swinging at last night's 77th annual Academy Awards, pleasing the audience with a political jab aimed squarely at the White House.

(BEGIN VIDEO CLIP)

ROCK: Just imagine you worked at the Gap. You're $70 trillion behind on your register and then you start a war with Banana Republic. Because you say they got toxic tank tops over there. You had the war, people are dying, a thousand Gap employees are dead, that's right, bleeding all over the khakis. You finally take over Banana Republic and you find out they never made tank tops in the first place.

(END VIDEO CLIP)

KAGAN: Well, in trying to please a lot of audiences, Chris Rock also sent a shout out to troops serving the U.S. around the world. With us NOW from Los Angeles, a man who probably did not get much sleep last night, Tom O'Neil. Let's see, he used the whole segment with your whole list. Host of goldderby.com, senior editor "In Touch," and author of the movie awards. Plus we saw you on the TV Guide channel last night. You are everywhere. Good morning.

TOM O'NEIL, AUTHOR, "MOVIE AWARDS": Well, this is my star gig right here, the Daryn Kagan show.

KAGAN: Oh, there you go. OK, let's talk about Chris Rock first. What's the word on how he did?

O'NEIL: Well, he's getting stoned by critics, literally. The worst review of all is in "USA Today" today, which said, those Oscar leaders must have had rocks in their heads to use this guy. Everybody knows he's funny and he did a good job at making us laugh last night, but that was the Chris Rock show, that wasn't the Oscars.

KAGAN: And what's the Oscars supposed to be, in the tradition- sense of hosting it?

O'NEIL: It's supposed to be more like what Whoopi Goldberg does, who's a comic of the same kind of -- Chris Rock sensibility. But she knows how to preside over this as a family reunion and how to tweak people with an endearing way, instead of -- like, Chris Rock's show biz jokes last night, for example, he said hey, if you want to make a movie with Tom Cruise in it, just wait. Don't use Jude Law. Well, that's not a funny punchline. Jude Law doesn't work. As a matter of fact, Sean Penn got so upset about the Jude Law jokes that he just -- he released a comment nailing Chris Rock.

KAGAN: OK, they also tried something, the fact that he hosted -- they also tried kind of these reality television things, where sometimes all the nominees had to come up on the stage, sometimes they had to stay in their seat. This, I thought, was uncomfortable to watch. These people do not want to be up there. Probably wonderful art directors -- this particular category. But they don't want to be up there.

O'NEIL: No, they were so uncomfortable that the winners, when they came backstage to be with us in the press room, were saying things like, it was terrible, it was bad enough for us, but the poor losers. We're never going to see this again. It was a true disaster.

KAGAN: You were backstage. So give us some of the scoop from back there, some of the winners you got to talk to. Hilary Swank, what did she have to say about being a two-time winner so young in her career?

O'NEIL: She said what a lot of us are thinking, and it was very humbling of her to say it, but, come on. This woman is now in the pantheon with Betty Davis, with Robert De Niro, with Jack Nicholson and Spencer Tracey as a multiple winner. As she said last night, Hilary Swank, and then list off all of the other names, and she said, something there just doesn't fit.

KAGAN: Sometimes when the stars get backstage, I know from being back there a number of years, they kind of loosen up a little bit, and they have a little bit more fun when they give their acceptance speech. Sounds like that's what Cate Blanchett did when she won for best actress in "The Aviator." O'NEIL: Yes, she sure did. She walked backstage with a glass of champagne in one hand and an Oscar in the other, and she was going to put the Oscar down and keep champagne, and then she realized she was on camera, and she says, oh, I don't want to get caught doing that. She was hilarious, and she was saying when asked by one reporter, well, are you going to be a diva now? She cried out, honey, you ain't seen nothing yet!

KAGAN: And just having a good time.

OK, now Hollywood is buzzing, but the biggest buzz of Oscar weekend didn't happen at the show. Tell us what they're talking about in Hollywood.

O'NEIL: "Saturday Night Variety," the show business trade paper, had a party, and Brad Pitt and Jennifer Aniston showed up looking quite chummy at first, and later on quite lovey-dovey. It really does seem as if these two have patched it up.

KAGAN: They might. I sense perhaps more magazine covers, as if we haven't seen enough since the beginning of the year.

O'NEIL: What's interesting here is, you know, by the way, Daryn, they are planning in May to go to their favorite resort in Anguilla. This is just weeks before Brad's supposed to go on tour with Angelina Jolie for their Mrs. And Mrs. Smith movie.

KAGAN: We'll bring you back and talk. Yes, and we know how that works out.

Tom, thank you. We'll see you at goldderby.com and "In Touch." Tom O'Neil, Thank you.

SANCHEZ: That was a pretty good show. Did you like it?

KAGAN: Not my favorite Oscars.

SANCHEZ: Do you think Chris Rock was a little off?

KAGAN: I am a huge Chris Rock fan, didn't love him in that role.

When you pulled him in, you don't get the Chris Rock that people know and love.

SANCHEZ: I want to know when it became Blanchett.

KAGAN: Cate Blanchett?

SANCHEZ: Yes.

KAGAN: Instead of Blanchett?

SANCHEZ: Yes.

KAGAN: She's British.

SANCHEZ: But everyone's always said Blanchett.

KAGAN: We'll give her a call. We'll ask.

SANCHEZ: OK. I'm Rick Sanchez.

KAGAN: I keep trying to work with you. Rick Sanchez.

SANCHEZ: It is now 10:52 here on the East Coast. It is 7:52 on the West. Stay with us. We'll be back with a quick check of your morning forecast.

(COMMERCIAL BREAK)

(WEATHER REPORT)

KAGAN: Investigators say that America's most-wanted serial killer has been arrested. There are questions about the evidence. Law enforcement analysts Mike Brooks joins us in a moment.

SANCHEZ: Also, are Americans observing State Department travel warnings? Also, find out why some American jetsetters say the advisories are bogus. They don't pay as much attention to them as you think. The second hour of CNN LIVE TODAY begins right after a quick break.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired February 28, 2005 - 10:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: And in London, they're at it again. Look at these live pictures. Caped crusaders delivering their protests to the second floor ledge of the British Foreign Office. They're part of a parental rights group, Fathers for Justice. That group demands greater parental rights for divorced fathers. It is notorious for publicity stunts just like this.
RICK SANCHEZ, CNN ANCHOR: President Bush did the Europe thing all last week. I suppose you could say he did some of the Asia thing as well. And now he's going to be doing the domestic thing. And the domestic thing is has of late included his Social Security reform package.

We get the details now on this from our White House correspondent, Dana Bash, who is go to be following the president, who I understand might be speaking in the next couple of hours, is that right, Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: That's right, Rick. And certainly Social Security is on top of his domestic agenda, no question about it. And the president will be speaking within about a half an hour to the governors who are here for a meeting. But he is also going to get back on the road, travel to New Jersey and Indiana at the end of the week of course to talk about his idea for creating private accounts in Social Security.

Republicans say although it is very early in the process, some are already bracing for some tough compromises.

(BEGIN VIDEOTAPE)

BASH (voice-over): After a week on the world stage, the president returns to his biggest challenge on the home front: selling a Social Security overhaul. While Mr. Bush was on his self described European listening tour, members of Congress were back home listening to often skeptical constituents about the Bush plan for creating private accounts in Social Security.

SEN. RICK SANTORUM, (R) PENNSYLVANIA: What do you get in exchange if we do nothing?

BASH: Republican Senator Rick Sanatorium spent all week in town hall meetings pushing the idea, insists it's still early, but admits the president is short support.

SANTORUM: Right now, they're not there. But like I said, you're asking me whether I win the game and I'm two minutes into the game.

BASH: Several Senate Democrats say they'd back private retirement accounts but only outside Social Security. Some Republicans are starting to signal compromising on personal accounts may be inevitable, but the philosophical divide runs deep.

SEN. JON CORZINE, (D) NEW JERSEY: This proposal of privatization is a radical shift in the covenant that we have laid down with regard to Social Security on generation to the next.

SEN. JOHN SUNUNU, (R) NEW HAMPSHIRE: I don't think a bill will pass that doesn't include personal accounts for younger workers, at least giving them the option.

BASH: Still completely unresolved, how to achieve the president's stated goal: ensuring Social Security's solvency. The White House concedes personal accounts alone won't do it. And Democrats are seizing on that.

SEN. JOE BIDEN, (D) DELAWARE: The American people begin to understand there's no correlation between, quote, fixing Social Security and private accounts.

BASH: The president is careful not to take anything except raising payroll taxes off the table. Republican sources say compromise options for keeping Social Security out of the red include cutting benefits deepest for the wealthy while letting low income beneficiaries do better and raising the $90,000 payroll tax cap, though most GOP leaders call that a tax hype and a nonstarter.

(END VIDEOTAPE)

And Republicans do see some progress in their cause in that some Democrats over the weekend did acknowledge that Social Security is a problem that does need fixing. The White House is again saying that pretty much everything is on the table in order to try to find what may be quite an elusive compromise for this -- Rick.

Moving back to the business at hand last week that the president was dealing with. There were a lot of questions as to whether or not this administration would join some European countries in, well, dangling a carrot in front of the nose of the Iranians to get them to stop with nuclear weapon program. Any movement on that, Dana?

BASH: Well, what the White House said with the president and his top aides said in Europe last week, is that they really want to work with the Europeans on Iran. Of course, the United States is not a part of the talks that three Europeans countries are having with Iran to get them to stop at their nuclear program. But the White House says they were very happy about the fact that they spoke with one voice about the need for Iran not to have a nuclear weapon.

So the president did come back, and just to perhaps show the way they're trying to frame this, the next day, the day he got back, on Friday, he did meet with his top advisers here at the White House to talk about what they could potentially go for in terms of economic incentives. The White House says this morning, they are considering several incentives, including allowing Iran to get into the WTO, but it is certainly significant in that this seems to be fill philosophically different than they way White House handles North Korea, for example, where they want offer anything before they agree to stop their nuclear program first.

SANCHEZ: Yes, that's interesting. Dana Bash, we thank you for bringing that report on what appears to be a snowy day there in Washington.

BASH: Very much.

SANCHEZ: Thank you -- Daryn.

KAGAN: Now on to Israeli/Palestinian peace efforts. An international conference gets underway in London tomorrow on Palestinian reforms. Secretary of State Condoleezza Rice left Washington this morning for the meeting. British Prime Minister Tony Blair is hosting the conference. And foreign ministers from some 25 Arab and European countries will attend. Israeli will the not attend.

Palestinian President Mahmoud Abbas today said he will not tolerate attacks like Friday's suicide bombing in Tel Aviv. Abbas' comment follows Israeli Prime Minister Ariel Sharon's criticism that the Palestinians weren't doing enough about terrorism. But Mr. Sharon leveled his harshest charge for Friday's attack against a Syrian-based group.

CNN's John Vause has more from Jerusalem.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): Galla Badran (ph) was a walking human bomb on Friday night, a 22-year-old student from a small village in the west bank. But Israeli authorities have no doubt the order to blow himself up came from Islamic Jihad leaders in Syria. Not so, say the Syrians.

FAROUQ AL-SHARA, SYRIAN FOREIGN MINISTER: If a terrorist attack took place in Beirut, they accuse Syria; if it took place in Tel Aviv, they accuse Syria. Probably for tsunami, they would accuse Syria.

VAUSE: More than a year ago Israeli warplanes bombed a suspected training camp for Islamic Jihad south of Damascus. Another airstrike is a possibility, says Israel, just not yet.

ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): The orders came from the Islamic Jihad elements in Syria. Even though we know this was certain, it is not enough to absolve the Palestinian Authority of its responsibility.

VAUSE: Instead, the pressure is on the new Palestinian leader, Mahmoud Abbas. Israel is demanding he not only disarm militant groups, but eliminate them completely.

MARK REGEV, ISRAELI FOREIGN MINISTRY SPOKESMAN: It's very important to dismantle that infrastructure so it can't be exploited by third parties.

VAUSE: Israeli security is back on high alert, and the handover of five West Bank cities to Palestinian control has been put on hold.

NABIL SHA'ATH, PALESTINIAN AUTHOR P.M.: The more that delay takes place, the more we are going to create adverse conditions.

VAUSE: Mahmoud Abbas has been trying hard to avoid a direct confrontation with the militant groups, declaring a cease-fire to a crackdown.

GUY BECHOR, POLITICAL ANALYST: If he goes towards Israel, this process in the U.S., those Islamic movements will jump and overthrow him actually.

VAUSE: But if he doesn't act, Israel warns it will. And that could mean a return to the past.

(on camera): But no one it seem is willing to go there just yet. For now, the Israelis are talking tough, but walking lightly. And the Palestinian security services have been hunting down and arresting those involved in the Tel Aviv attack. Relations have been strained, but are far from breaking.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

KAGAN: And once again, we have this developing story coming out of the Northern West Bank. It is a report from Israeli troops saying they discovered, they say, a car that was packed with explosives, believed to be prepared by militants from the radical Islamic Jihad movement. By the way, that is the same group that claimed Friday's suicide bombing in Tel Aviv that John Vause was just talking about in his report. More on that as details come in.

SANCHEZ: We also have more reaction the Syrians. In fact, the Syrian presence in Lebanon has now led to thousands to try and defy the government's ban against protests today.

Take a look at this. The demonstrators were able to make -- able to reach Beirut's Martyr Square, despite a blockade by security forces there. Opposition lawmakers plan a no-confidence today in the Syrian- backed government. The opposition blames Syria for the recent assassination of Rafik Hariri. Syria has denied any connection with killing of the former Lebanese prime minister.

KAGAN: We're going to turn the corner here in a little bit, talk about a story that animal loves will relate to, a question of how far would you go to save your own dog? Extensive vet care, yes? Expensive medical bills, sure. What about CPR? One man's love for his best friend, coming up in the next hour.

SANCHEZ: Also, downloading your music. There's some changes that are coming, and it could hit you right smack dab in the wallet.

(COMMERCIAL BREAK)

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(BEGIN VIDEO CLIP)

BARBARA STREISAND, SINGER/ACTRESS: The Oscar goes to...

DUSTIN HOFFMAN, ACTOR: Sorry.

STREISAND: OK.

HOFFMAN: Go ahead.

STREISAND: The problem is I forgot my glasses but... I'm so happy to give you this again, Clint. "Million Dollar Baby"!

(END VIDEO CLIP)

SANCHEZ: It was all about "Million Dollar Baby." It scored a knockout at the Oscars, even as "The Aviator" proves to be a winning contender, as well. Who told you that, by the way, here last week? Don't know, but her initials are Daryn Kagan. And yes, she got it right. Beat me. Chris Rock led the charge in this year's Hollywood gold rush. In fact, listen up.

(BEGIN VIDEO CLIP)

ANNOUNCER: Chris Rock!

CHRIS ROCK, COMEDIAN: Thank you. Thank you!

(END VIDEO CLIP)

SANCHEZ: He held the expletives to a minimum. Those are curse words, by the way. But came out swinging at last night's 77th annual Academy Awards, pleasing the audience with a political jab aimed squarely at the White House.

(BEGIN VIDEO CLIP)

ROCK: Just imagine you worked at the Gap. You're $70 trillion behind on your register and then you start a war with Banana Republic. Because you say they got toxic tank tops over there. You had the war, people are dying, a thousand Gap employees are dead, that's right, bleeding all over the khakis. You finally take over Banana Republic and you find out they never made tank tops in the first place.

(END VIDEO CLIP)

KAGAN: Well, in trying to please a lot of audiences, Chris Rock also sent a shout out to troops serving the U.S. around the world. With us NOW from Los Angeles, a man who probably did not get much sleep last night, Tom O'Neil. Let's see, he used the whole segment with your whole list. Host of goldderby.com, senior editor "In Touch," and author of the movie awards. Plus we saw you on the TV Guide channel last night. You are everywhere. Good morning.

TOM O'NEIL, AUTHOR, "MOVIE AWARDS": Well, this is my star gig right here, the Daryn Kagan show.

KAGAN: Oh, there you go. OK, let's talk about Chris Rock first. What's the word on how he did?

O'NEIL: Well, he's getting stoned by critics, literally. The worst review of all is in "USA Today" today, which said, those Oscar leaders must have had rocks in their heads to use this guy. Everybody knows he's funny and he did a good job at making us laugh last night, but that was the Chris Rock show, that wasn't the Oscars.

KAGAN: And what's the Oscars supposed to be, in the tradition- sense of hosting it?

O'NEIL: It's supposed to be more like what Whoopi Goldberg does, who's a comic of the same kind of -- Chris Rock sensibility. But she knows how to preside over this as a family reunion and how to tweak people with an endearing way, instead of -- like, Chris Rock's show biz jokes last night, for example, he said hey, if you want to make a movie with Tom Cruise in it, just wait. Don't use Jude Law. Well, that's not a funny punchline. Jude Law doesn't work. As a matter of fact, Sean Penn got so upset about the Jude Law jokes that he just -- he released a comment nailing Chris Rock.

KAGAN: OK, they also tried something, the fact that he hosted -- they also tried kind of these reality television things, where sometimes all the nominees had to come up on the stage, sometimes they had to stay in their seat. This, I thought, was uncomfortable to watch. These people do not want to be up there. Probably wonderful art directors -- this particular category. But they don't want to be up there.

O'NEIL: No, they were so uncomfortable that the winners, when they came backstage to be with us in the press room, were saying things like, it was terrible, it was bad enough for us, but the poor losers. We're never going to see this again. It was a true disaster.

KAGAN: You were backstage. So give us some of the scoop from back there, some of the winners you got to talk to. Hilary Swank, what did she have to say about being a two-time winner so young in her career?

O'NEIL: She said what a lot of us are thinking, and it was very humbling of her to say it, but, come on. This woman is now in the pantheon with Betty Davis, with Robert De Niro, with Jack Nicholson and Spencer Tracey as a multiple winner. As she said last night, Hilary Swank, and then list off all of the other names, and she said, something there just doesn't fit.

KAGAN: Sometimes when the stars get backstage, I know from being back there a number of years, they kind of loosen up a little bit, and they have a little bit more fun when they give their acceptance speech. Sounds like that's what Cate Blanchett did when she won for best actress in "The Aviator." O'NEIL: Yes, she sure did. She walked backstage with a glass of champagne in one hand and an Oscar in the other, and she was going to put the Oscar down and keep champagne, and then she realized she was on camera, and she says, oh, I don't want to get caught doing that. She was hilarious, and she was saying when asked by one reporter, well, are you going to be a diva now? She cried out, honey, you ain't seen nothing yet!

KAGAN: And just having a good time.

OK, now Hollywood is buzzing, but the biggest buzz of Oscar weekend didn't happen at the show. Tell us what they're talking about in Hollywood.

O'NEIL: "Saturday Night Variety," the show business trade paper, had a party, and Brad Pitt and Jennifer Aniston showed up looking quite chummy at first, and later on quite lovey-dovey. It really does seem as if these two have patched it up.

KAGAN: They might. I sense perhaps more magazine covers, as if we haven't seen enough since the beginning of the year.

O'NEIL: What's interesting here is, you know, by the way, Daryn, they are planning in May to go to their favorite resort in Anguilla. This is just weeks before Brad's supposed to go on tour with Angelina Jolie for their Mrs. And Mrs. Smith movie.

KAGAN: We'll bring you back and talk. Yes, and we know how that works out.

Tom, thank you. We'll see you at goldderby.com and "In Touch." Tom O'Neil, Thank you.

SANCHEZ: That was a pretty good show. Did you like it?

KAGAN: Not my favorite Oscars.

SANCHEZ: Do you think Chris Rock was a little off?

KAGAN: I am a huge Chris Rock fan, didn't love him in that role.

When you pulled him in, you don't get the Chris Rock that people know and love.

SANCHEZ: I want to know when it became Blanchett.

KAGAN: Cate Blanchett?

SANCHEZ: Yes.

KAGAN: Instead of Blanchett?

SANCHEZ: Yes.

KAGAN: She's British.

SANCHEZ: But everyone's always said Blanchett.

KAGAN: We'll give her a call. We'll ask.

SANCHEZ: OK. I'm Rick Sanchez.

KAGAN: I keep trying to work with you. Rick Sanchez.

SANCHEZ: It is now 10:52 here on the East Coast. It is 7:52 on the West. Stay with us. We'll be back with a quick check of your morning forecast.

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KAGAN: Investigators say that America's most-wanted serial killer has been arrested. There are questions about the evidence. Law enforcement analysts Mike Brooks joins us in a moment.

SANCHEZ: Also, are Americans observing State Department travel warnings? Also, find out why some American jetsetters say the advisories are bogus. They don't pay as much attention to them as you think. The second hour of CNN LIVE TODAY begins right after a quick break.

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